Businesses adjust to a 'new normal' as one in two plan to hire new staff

ONLY one out of every two private businesses in Australia intends to hire staff over the next six months, according to a survey by financial advisory firm PricewaterhouseCoopers (PwC).

And fewer than one in three businesses are planning for a major investment in the year ahead - the lowest level in five years.

PwC on Monday released its 2013 Private Business Barometer Pulse, a survey of more than 300 private businesses across Australia, each of which has an annual turnover of between $10 million and $100 million.

The survey found that many businesses were less optimistic about the year ahead than in previous years.

"They appear to be adjusting to the 'new normal' and accepting that massive growth or profit margins are not necessarily realistic, at least not without a change in focus or significant investment," PwC national managing partner for private clients, David Wills said.

Mr Wills said fewer businesses had reported profit growth in the last 12 months, and profit and sales growth were the lowest since February 2008.

Forecast profit increases were easing.

Consumer confidence was seen as the biggest barrier to growth.

On the positive side, 64 per cent of businesses met or exceeded their revenue targets, up from 62 per cent in the prior year.

Mr Wills said businesses that were doing well were either seizing opportunities or re-inventing themselves.

They were not waiting to see what would happen on the domestic or global economic and political front.

Instead, they were looking to innovate, enter new markets, improve their business models, consider new channels to market such as digital, and invest for long-term growth.